Overview

• The new collective bargaining agreement provides a two-stage salary increase: 3% starting April 2025 and 2.8% from May 2026, with additional allowances for shift work and a higher 13th-month salary.
• Workers can exchange part of their 13th-month salary for extra leave and voluntarily increase weekly hours to 42, with a review of this provision in five years.
• The deal imposes significant financial strain on municipalities, with annual costs exceeding €10 billion, raising fears of cuts to public services and infrastructure.
• The agreement is retroactive to January 2025 and prevents further strikes in the affected sectors until March 2027, though negotiations for state employees, including teachers, are set for later this year.
• Criticism surrounds the deal's limited response to inflation and delayed implementation, with unions expressing dissatisfaction and concerns over unresolved public sector challenges.